From Mashable:
The rumblings surrounding a possible Google smart watch got louder back in September when the company confirmed that it had purchased Wimm, a maker of Android-based smart watches.
Now, those rumors are likely to gain even more steam: 9to5Google cites a a source that claims Google’s smart watch is nearing completion.
According to the report, the smart watch will focus on harnessing the utilities present in Google Now, the company’s software tool that acts as a kind of intelligent mobile digital assistant.
Currently, Google Now can be used on any number of Internet-connected Android and iOS devices. But a smart watch would make the most sense in terms of utilizing the software's ability to offer predictive suggestions based on your search habits and preferences.
The final details are in flux, but Google is reportedly working on increasing the device’s battery life and adding Bluetooth 4.0 connectivity.